#Cotton #TextileIndustry #CentralGovernment #DutyExemption #Exports #CottonImports #IndianEconomy #MakeInIndia #TradeBoost #PIB
New Delhi: In a move aimed at supporting the Indian textile industry and exporters, the Central Government has announced the extension of the import duty exemption on cotton (HS 5201) until 31st December 2025.
Earlier, the exemption was granted for a short period, from 19th August 2025 to 30th September 2025, to ensure better availability of cotton for the domestic market. However, with the textile sector continuing to face high raw material costs, the government has now extended this window until the end of the calendar year.
The Ministry of Finance confirmed that a formal notification regarding the extension will be issued shortly.
Industry experts believe this move will help stabilize cotton prices in the domestic market and ease input cost pressures for the textile value chain, particularly for small and medium enterprises engaged in spinning, weaving, and garment manufacturing.
India’s textile and apparel sector is one of the largest employers in the country, and cotton remains the backbone of the industry. With global demand reviving and exporters facing stiff competition from countries like Bangladesh and Vietnam, the extension of duty-free cotton imports is expected to enhance India’s competitiveness.
According to trade sources, the duty exemption is likely to benefit not only exporters but also domestic consumers, as it could help curb inflationary pressures in the textile and apparel segment.
The decision comes at a crucial time when the sector is gearing up for festive season demand in both domestic and international markets. The availability of duty-free imported cotton will also ensure that production schedules are not disrupted due to raw material shortages.
The government has been taking proactive steps to support the textile industry, including the PM MITRA parks scheme, PLI scheme for textiles, and skill development initiatives. The extension of the cotton duty exemption further aligns with these efforts to make India a global leader in textile exports.
Key Points:
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Import duty exemption on cotton extended till 31st December 2025.
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Initially valid from 19th August 2025 to 30th September 2025.
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Aimed at supporting exporters and ensuring raw material availability.
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Expected to stabilize cotton prices and enhance textile sector competitiveness.
This move reaffirms the government’s commitment to ensuring sustainable growth and resilience in one of India’s most critical sectors.
Hashtags:
#Cotton #TextileIndustry #CentralGovernment #DutyExemption #Exports #CottonImports #IndianEconomy #MakeInIndia #TradeBoost #PIB
